🎉 Stocks hit new highs

Together with Stansberry Research

Good morning investors! Bitcoin momentarily fell below $40,000 while stocks continued to climb higher. Today, we’ll be keeping our fingers crossed as we wait for earnings reports from Netflix, General Electric, Johnson & Johnson, and more.

Today we cover:

• Deflation in China?

• Stocks hit new highs.

• Financial benefits of having kids.

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📊 Economy and News 

China to enter deflation?

Shaun Rein, founder of the China Market Research Group, expects China to experience “another 3-6 months minimum of a very painful economy.”

The country has been suffering since the pandemic. Some blame restrictive policies for the slow growth, but the country has other issues as well, including tension with the US.

Earlier this week, the People’s Bank of China held its one-year and five-year loan prime rates at 3.45% and 4.2%, respectively, in line with forecasts.

The real estate is in a crunch and many big names have bowed out. The industry accounts for roughly a third of China’s economic activity. Buyers are far from the market as they expect prices to drop, which is causing more issues.

The country is closer to Russia than ever and the latter is now its largest oil supplier.

Even the stock market is going downhill. It’s currently facing its worst start to a year since 2016.

Since China is a large market, changes in the country could impact other nations as well, including the US.

Global hits:

• Tencent’s Riot Games division cuts 11% of staff to ‘create focus’ yet experts think it could us a while to lose our jobs to robots.

• Macy’s rejects a $5.8 billion unsolicited takeover offer.

• After Netflix, Sony also suffers in India. Yet, Disney has high hopes.

📈 Stocks

S&P 500 4,850.43 (+0.22%)
DJIA 38,001.81 (+0.36%)
NASDAQ 17,330.38 (+0.095%)
BRENT CRUDE 79.90 (-0.20%)
* Prices as of Jan 23rd, 12:20 AM UTC

Stocks hit new highs but some are in trouble

The Dow crossed the 38,000 mark for the first time ever yesterday, inching closer to year-end price targets of 40,000 to 45,000.

Similarly, the S&P 500 also closed at an all-time high.

Stocks like Facebook and Nvidia are at new highs but there is trouble for some businesses, including Boeing, which has been dealing with major bad events.

After the midair blowout, the company has been under inspection and now the Federal Aviation Administration has urged airlines to inspect door plugs on an earlier version of Boeing 737 planes.

The stock has fallen 14% since the Max 9 incident and might fall further as the newer Max 9 aircraft continues to be grounded in the US.

The situation is impacting other brands as well, most notably airline companies.

United Airlines yesterday said it expects a quarterly loss of at least 35 cents a share due to the grounding.

The company reported the following numbers:

• Adjusted earnings per share: $2.00 vs. an expected $1.69

• Total revenue: $13.63 billion vs. an expected $13.54 billion

Still, we’re in a bull market and some great opportunities might be ahead for people who play well.

Sponsored by Stansberry Research

50-year Wall Street Insider Names #1 Stock for AI “Tidal Wave”

Microsoft's CEO says AI is a "tidal wave” with more potential than the internet.  

That's why Microsoft has spent $13 billion on AI investments - they’re desperate to claim their own stake. And you should be too.  But before you buy MSFT (or any other FAANG stock), you’ll want to watch this interview. 

In it, 50-year Wall Street veteran names his #1 AI stock to buy (it’s not what you’d expect).

🔐 Crypto

Bitcoin $40,018 (-1.91%)
Ethereum $2,322 (-0.96%)
Total market cap $1.58T (-2.28%)
* Prices as of Jan 23rd, 12:20 AM UTC

A look at crypto

Here’s the latest in crypto:

• SEC blames ‘SIM swap’ attack for hacked X account prior to official Bitcoin ETF approval.

• Binance vs. SEC: Judge shows skepticism on BUSD as an investment contract

• US lawmakers press Meta over crypto and blockchain plans.

• MoonDAO ‘unlikely’ to colonize the moon by 2030, admits co-founder.

• Bug that took down 8% of Ethereum's validators sparks worries about more issues.

• Bitcoin dips below $40k amid BTC ETF selloffs largely due to FTX selling about $1B of Grayscale's Bitcoin ETF.

💵 Personal Finance

Financial benefits of having kids - Part I

When we think of the financial side of raising children, we usually think of related expenses. However, there are also some exciting financial benefits of having kids.

Tax benefits

This is the biggest benefit of having children. The US and some other countries offer tax rebates and perks to filers with children. Here are a few things to know:

• The Child Tax Credit can help families offset the cost of raising kids. The credit is worth up to $2,000 per qualifying child.

• The Child and Dependent Care Credit covers qualified expenses for the care of disabled dependents and children. Only up to $3,000 (expenses) are covered for one individual and up to $6,000 for two or more individuals. The percentage, however, depends on your adjusted gross income.

• The Adoption Tax Credit is for families that adopt a child. For 2023, the adoption tax credit is fully available in the amount of $15,950 if your modified adjusted gross income is equal to or less than $239,230. If your modified adjusted gross income is more than $239,230 but less than $279,230, you will receive a reduced tax credit. The amount is revised every year. Families who were in the adoption process during 2022 can claim up to $14,890 in eligible adoption expenses for each eligible child.

• The Earned Income Tax Credit is a refundable tax credit that ranges from $560 to $6,935 for tax year 2022.

This isn’t it as there are more benefits of having kids. Watch out for part II tomorrow.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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